Thank youI can provide one reference point, for a couple age 61 and 62 in 2022 in good health:We have not priced this in years and therfore do not know the current rates.Yeah, hard pass. If I get to that point, I'll let the money I have cover it as much as it can and go broke after that and let the govt take over. LTC insurance last I saw was incredibly expensive.
What are the more recent prices, amounts, and terms?
- A Partnership Policy that protects assets paid from Medicaid income limits
- 180 day Elimination Period (shortening to 90-days raises price significantly)
- Max Daily Benefit in 2022 $200/Day
- 2 x 3-Year Benefit Periods + 1 x 3-Year Shared Benefit Period
- 3%/Year compounded inflation rider
Policy cost = $6,352/Year
For contrast if I look at my 88-year old Mother’s policy written in 1996 for her and my father who passed in 2014:
- 90-Day Elimination Period
- Max Daily Benefit in 2022 was $700/day
- Unlimited Lifetime Benefit Period
- 5%/Year compounded inflation rider
She pays about $5,000/year for this policy.
The policy was originally about $1,400/year in 1996. This is an example of a pre-2006 (State cost increase regulations) policy that was poorly underwritten. I do not believe that any insurance company will write a policy like this today for this price. My mother has seen a steady stream of rate increases across the decades as a result.
Hard to compare directly but the policies are much more expensive than what we remember.
I am not sure we would purchase policies today given the new rates/terms - it would require a deep dive on a host of things including the financial status of the originator. Maybe and maybe not - hard to tell.
Statistics: Posted by smitcat — Sun Mar 17, 2024 9:37 am — Replies 11 — Views 813
